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If You Are Calculating the Variance and Standard Deviation of Returns

question 39

True/False

If you are calculating the variance and standard deviation of returns for a share, the variance will always be larger than the standard deviation.


Definitions:

Testable Predictions

Hypotheses or statements that can be verified through empirical observation and experimentation.

Falsifiable

A characteristic of a theory that presents the possibility of being proven false by observation or experiment.

Replicable Results

Results that can be consistently repeated or duplicated in scientific experimentation, ensuring reliability.

Wish Fulfillment

A concept in psychoanalytic theory referring to the satisfaction of a desire through dreaming or fantasizing.

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